Pakistan Economy - News & Updates - Archive

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'Investment climate conducive in Punjab' ​

LAHORE (August 12 2007): Provincial Minister for Trade and Investment, Dr Sohail Zafar Cheema has said due to sagacious and far-reaching policies of Punjab Chief Minister Chaudhry Pervaiz Elahi, industries are being set up in the province as a result of which large scale job opportunities are being made available.

He said Sundar Industrial Estate has been established in Lahore under private-public partnership where enormous foreign and local investment opportunities are being generated.

The Minister said that industrial estate is being set up in Faisalabad over an area of 4,000 acres while Multan Industrial Estate has been rehabilitated which will provide thousands of job opportunities to the unemployed people. He said that technical training is being imparted to 100,000 people annually at union council level throughout the province under Tevta and they are being provided job opportunities in these industrial units. The minister said capacity of this training programme would be doubled.

He said Shaikh Zayed Centre and Sports City are being established in Lahore at a cost of 700 million dollar each. He said stores are being established by the international organisations like MAKRO and METRO which will result in investment of hundreds of million dollars.

http://www.brecorder.com/index.php?id=604698&currPageNo=1&query=&search=&term=&supDate=

 

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'Sundar Industrial Estate to provide thousands of jobs' ​

LAHORE (August 12 2007): Provincial Minister for Industries, Muhammad Ajmal Cheema has said the government measures and projects for industrial and social development in accordance with the vision of President Pervez Musharraf and Chief Minister Punjab Chaudhry Pervaiz Elahi had started yielding results.

The Sundar Industrial Estate was the best industrial estate of the country, which would result in provision of 60,000 direct and 6,00,000 indirect job opportunities to the people. Industrial estates were being established throughout the province to expedite the pace of industrial development as well as generation of employment opportunities and their management had been given to the private sector.

He said promotion of industrial development and provision of employment was part of vision 2020. He expressed these views while talking to a delegation of industrialists at his residence, here on Saturday.

The Minister said on the special directions of the Chief Minister Punjab, Chaudhry Pervaiz Elahi, Sundar Industrial Estate project was started three years ago at a cost of Rs one billion under public private Partnership and its management was given to the private sector. He said the Sundar Industrial Estate consisting of 1,500 acres of land had been provided state-of-the-art infrastructure.

He said all plots in this industrial estate had been sold and it has its own power generation system. He said, medicines, chemical, pesticides, plastic, food beverage and other industries were being set up in Sundar Industrial Estate.

He said water treatment plant was also being installed here for provision of potable water. He said a labour colony was being constructed here to provide residential facilities to the labourers and steps have been taken to provide education and health facilities to the workers. He said due to effective monitoring system of the Sundar Industrial Estate, outstanding results had been achieved.

http://www.brecorder.com/index.php?id=604724&currPageNo=1&query=&search=&term=&supDate=

 

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Mineral sector allocated Rs 326 million ​

ISLAMABAD (August 12 2007): The government has earmarked Rs 326 million during the financial year 2007-08 for the development of mineral sector in the country, Planning Commission sources said.

The focus of the mineral sector during the year would be on generation of basic geological data and its dissemination through print and electronic media, for attracting international investment particularly in metallic minerals and coal related energy projects by publishing project profiles of world class mineral resources in well-reputed mining magazines.

Accelerated geological mapping and geo-chemical exploration of high mineral potential areas of Pakistan would assist understanding the genesis and geometry of these deposits for the subsequent development.

The revised mineral policy would attract local and foreign investment and accelerate exploration and research activities in the country. The minerals with good chances for export, substitute imports and meet the local consumption were being given priority, the sources informed.

An amount of Rs 326 million has been earmarked for the minerals (non-fuel) sector. Major projects to be carried out during the year 2007-08 include: Ground follow-up Aero-magnetic anomalies in Chagai district at Balochistan at a cost Rs 35 million, upgradation/strengthening of Geo-science Advance Research Laboratories GSP Islamabad at a cost of Rs 70.180 million.

Accelerated Geological Mapping and Geological exploration of the out-crop area of the country at a cost of Rs 40 million, feasibility study for development and exploration of Chicchalai iron ore and commissioning of Steel Mill at Kalabagh at a cost of Rs 52.867 million, strengthening and capacity building of Mineral Wing at a cost of Rs 30 million and other relating to exploration of water in Balochistan and Gemstones Training-oriented projects at a cost of Rs 52 million.

http://www.brecorder.com/index.php?id=604750&currPageNo=1&query=&search=&term=&supDate=

 

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Prime Minister inaugurates new hotel near Karachi Airport ​

KARACHI (August 12 2007): Prime Minister Shaukat Aziz here on Saturday performed the inauguration of the Grand Mercure Hotel here. The 118-room hotel, with five star facilities, is located close to Jinnah International Airport.

Sindh Governor Dr Ishrat ul Ebad Khan, Federal Ministers Ameer Muqam, Awais Ahmed Khan Leghari, and Ministers of State Tariq Azeem Khan and Ali Asjad Malhi were also present on the occasion.

The Prime Minister said that opening of new hotels in the country, especially in Karachi, is the need of the hour because in a country which is growing and the economy which is moving ahead, the movement of people is linked to the growth of the economy. He said there is also need for tourist facilities, and that 2007 is the 'Visit Pakistan Year'.

He said that Pakistan with its historical past and Mughal and Gandhara periods as well as Indus Civilisation attracts a fair number of people who want to explore these areas. He said that aircraft and air travel are bringing about a major Transformation, "and we are trying to improve our national carrier, Pakistan International Airlines (PIA) and encouraging competition".

Shaukat said that many more airlines are coming to Pakistan as they see growth in business. He said that Pakistan also has about seven million people working overseas--in Europe, North America, Middle East and Far East. He said that airport management has also become a specialised field.

He pointed out that two major airports are being constructed in the country. The construction of Islamabad Airport has started and will be completed in three years' time. Another airport would be built at Gwadar.

The Premier said that airports really are the first impression a visitor gets when he visits a country. He said that as far as tourism is concerned the government will do whatever it can to bring more passenger traffic into the country.

Shaukat said that with the increased activity in the economy, the need for hotels is growing across the country. New hotel projects are coming up in Karachi, Lahore and Islamabad.

He said that the PIA and the private carriers are expanding and the job of the government is to create enabling environment. He said: "We are looking at six to eight percent growth in the economy per year. We are one of the fastest growing economies in Asia. This growth rate is moving ahead in the right direction."

He pointed out that the per capita income this year would cross 1,000 dollars. Civil Aviation Authority (CAA) Director-General Farooq Rehmatullah presented the address of welcome. The General manager of Grand Mercure Hotel, Thierry Goepfrort, also spoke on the occasion. Earlier, the Prime minister unveiled the plaque and performed the inauguration of the hotel.

http://www.brecorder.com/index.php?id=604715&currPageNo=2&query=&search=&term=&supDate=

 

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LNG terminal at Port Qasim to be completed in November 2008 ​

LAHORE (August 11 2007): The liquefied natural gas (LNG) import terminal, being set up by the Associated Group and Pakistan Gasport Limited at the Port Muhammad Bin Qasim on 'Built, Operate and Transfer' (BOT) basis, will be completed in November 2008 when the LPG production and first cargo will start.

The Associated Group Chairman and Chief Executive, Iqbal Z Ahmed, told Business Recorder that this terminal is located at twin pier, just north of Qutub point, near the confluence of Kadiro and Phitti creeks.

China Harbour Engineering and Adayard Dubai are EPC contractors while Techno-Consult International and Mustang Engineering are local and foreign consultants. He said that agreement was signed on April 28 this year while project completion date is set for November 2008 when the LPG production would start.

About the project's current status, he said that feasibility report was submitted to Port Qasim Authority (PQA) on January 12 and now engineering design of the jetty and submerged pipeline laying is in progress.

Apart from this, re-gas and LPG extraction facility detail design is in progress in Houston by Mustang Engineering. "Storage vessel lease arrangements are also in progress while the LNG supply source and supply vessel arrangements are underway," he added.

He said the re-gas platform fabrication contract was being finalised while banking consortium for project financing had already been completed. The Associated Group wants to buy LNG from spot market, he said, adding that the long-term sourcing of LNG and understanding of contracts for LNG purchase, RLNG supply to utilities, RLNG transportation agreements and direct sales to large customers were the project's challenges.

Of the Associated Group, he said the group started as a small family concern. After five decades of hard work and dedication, it is today one of Pakistan's pre-eminent corporate leaders with a wide range of interest. "We believe in corporate social responsibility, in giving back to the community and working on projects that benefit Pakistan's economy. We believe in profit, but profit from work that benefits humanity and helps economy," he added.

He said the group is one of the leading players in the energy sector of Pakistan and its flagship company Jamshoro Joint Venture Ltd is the single largest producer of LPG in Pakistan. The group also holds Lub Gas and Mehran LPG which market LPG across Pakistan through a wide network of distributors. The group is also involved in the production of NGL/Naphtha, fabrication of LPG cylinders, construction of LPG filling plants, real estate development.

He said that the Group is in advanced stages of augmenting production at the Jamshoro Plant by tapping oil and gas fields that have been declared uneconomic by the Government of Pakistan. "The Hanover Company, Walters Power International and our American and Chinese partners are pursuing these business opportunities with us," he said.

He said: "We strive for unequivocal excellence in all aspects of business so that we are able to satisfy and, indeed, exceed the expectations of our shareholders, employees and consumers. We believe in our vision and courage to lead the industry to higher standards."

He praised the government's economic policies, saying that the government's policies were conducive for investment both local and foreign. He said energy business was a difficult business but a good one, too. "However, only those having competitive edge will be able to survive in this business," he added.

He said that the business of imported LNG is viable in Pakistan because it is cheaper than furnace oil. Supporting the Iran-Pakistan-India gas pipeline project, he said this project is vital for all the three countries. "Our commitment is to meet energy requirements. In a record period of five months, the group has set up a 136MW power plant," he added.

Ahmed, who is also World Punjabi Organisation President, Pakistan Chapter, said peace was vital for both India and Pakistan. Both countries should make efforts for ensuring lasting peace in the region. He also supported exhibition of Indian films in Pakistan.

http://www.brecorder.com/index.php?id=604381&currPageNo=1&query=&search=&term=&supDate=

 

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Horticulture export issues discussed​

ISLAMABAD, Aug 11: Pakistan’s horticulture export share remained stagnant at $150 million during the last few years as against the total world horticulture market of $80 billion.

This negligible horticulture share in the world market is due to poor infrastructure, lack of proper packing and grading and low compliance to world standards.

Only 16 per cent of fruits are being processed, although this activity offers great opportunities to augment volume of value-added products using modern technology.

The fruits and vegetables exported in fresh form attract discount prices because exporters are unable to provide adequate grading and packing.

The potential markets for Pakistani exporters have been identified in Europe and the Middle East.

These issues were discussed at length in the first meeting of the sub-committee on infrastructure of the task force on horticulture finance and competitiveness.

The meeting was headed by Secretary Board of Investment Mushtaq Malik. It was attended by representatives of various ministries.

The sub-committee was established to help the task force achieve its goal by ensuring that all relevant actions are taken in developing needed infrastructure to facilitate production, post-harvest handling, storage, transport, processing and export by sea, land and air of the products of horticulture.

An official announcement issued here said the committee identified core areas and issues impacting competitiveness of the horticulture sector in Pakistan.

The meeting confirmed that the horticulture industry required major support in the area of infrastructure.

It was also noted that there were disparities between the infrastructure in Punjab where facilities were generally good and the other provinces.

The committee recognised the need for a national approach that can link production in remote areas with main markets.

The sub-committee will also be including its recommendations on financing requirements for infrastructure projects, where more private sector and public-private partnerships will be encouraged.

http://www.dawn.com/2007/08/12/ebr7.htm

 

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Pakistan-Afghan highway opened​

KHYBER AGENCY, Aug 11: Transporters, traders and people from different walks of life breathed a sigh of relief after the Pakistan-Afghan highway was opened on Friday night for all types of vehicular traffic after three days of closure.

The highway was closed after the people of Naiki-Khel, a sub-tribe of Zakhakhel, blocked the road over a land dispute three days ago.

Officials said that the tribesmen who blocked the road had been handed over to the political administration in Landi Kotal.The administration after the dispute had closed the road for two days, demanding the handing over of the perpetrators.

The tribesmen of Zakhakhel assured the administration that after the return of their leaders from the Pakistan-Afghan grand jirga, problems of the road closure would be solved forever.

The closure of the highway had caused traffic jams and created a number of problems for commuters.

http://www.dawn.com/2007/08/12/top11.htm

 

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Pak growth seen at 6.1pc during 2007-11 ​

LAHORE: A leading US economic magazine has forecast Pakistan’s GDP to grow at an average of 6.1 per cent during 2007-11 peaking with inflation declining to 5.5 per cent and interest rates to 7.3 per cent by 2011.

The magazine’s intelligence unit prepared a research report on Pakistan stating that besides political situation, military and militancy also provided a deep insight into Pakistan’s economy.

The entire economic structure of the country has been outlined including its main exports and export destination and import items and major avenues of imports.

The study of the intelligence unit of the magazine is not in line with the vision of present economic team that aims for GDP growth of eight per cent or higher for the next decade and expects inflation to reach 5.5 per cent in 2008-09.

The report of the magazine states that it expects the Pakistani currency to average Rs61:$1 in 2007 and Rs62:$1 in 2008, based on support from high levels of foreign investment.

Macroeconomic policies will focus on maintaining economic growth while fighting inflation. Efforts to widen the tax net and improve revenue collection will achieve some success.

Real GDP growth will average 6.1 per cent a year during 2007-11, driven by private consumption and investment.

The economy will remain dependent on textiles, other manufacturing and services.

Inflation, high oil prices and a possible asset-price correction are the biggest macroeconomic threats.

The current-account deficit will remain large, but will start to decline in 2007-08 as higher interest rates dampen domestic demand, leading to a slowdown in import growth.

Giving year wise predictions about different economic indicators the report predicts that the real GDP growth would be 6.9 per cent in 2007, 6.0 per cent in 2008, 6.2 per cent in 2009, and 5.8 per cent in 2010 and 2011.

On consumer price inflation the study by the intelligence unit of the magazine expects that it would be 6.3 per cent in 2007, 6.0 per cent in 2008, 5.6 per cent in 2009 and 2010 and 5.5 per cent in 2011.

It states that the budget deficit would be 3.8 per cent of GDP in 2007, 3.9 per cent in 2008, 3.8 per cent in 2009, 3.6 per cent in 2010 and 3.3 per cent in 2011. The current account balance would be 5.6 per cent of GDP in 2007, 5.0 per cent in 2008, 4.0 in 2009, 3.9 per cent in 2010 and 3.7 per cent in 2011.

The short term interest rates (discount rate) would be 10.1 per cent 2008, 10.1 per cent in 2008, 9.6 per cent in 2009, 8.3 per cent in 2010 and 7.3 per cent in 2011.

The study expects value of US dollar against Pakistani currency to reach Rs61 in 2007, Rs62 in 2008, Rs64 in 2009, Rs65 in 2010 and Rs66 in 2011.

http://www.thenews.com.pk/daily_detail.asp?id=67921

 

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Low-income people worst hit by inflation ​

ISLAMABAD: The weekly Sensitive Price Indicator (SPI) shows that inflation is hitting low income families the hardest as during the week ended August 9, the index stood at 9.48 per cent for the low-income group and only 5.38 per cent for high-income earners.

The combined SPI of 53 daily-use items for the week under review showed a 7.56 per cent increase compared to the corresponding week of the last fiscal, the Federal Bureau of Statistics (FBS) said on Saturday.

The bureau’s statistics further revealed that most of the kitchen items recorded an increase in prices. For the income group earning less than Rs3,000, SPI inflation was 9.48 per cent; for Rs3,001 to Rs5,000, it was 9.15 per cent; and for the income bracket from Rs5,001 to Rs12,000, the inflation stood at 8.20 per cent.

The significant feature of the weekly bulletin of FBS was that year-on-year rise in prices of some necessities and kitchen items was exorbitant.

These items are tomatoes, onions, chicken, potatoes, LPG, fresh milk, vegetable ghee (loose), cooking oil, milk powder and all kinds of pulses, which have hurt the low-income group the most.

The bulletin on SPI, based on data collected for about 53 items from 17 centres, showed that 21 items registered an increase and 10 items showed decrease, while prices of 22 items remained unchanged.

However, further analysis of data on yearly basis reveals that nine items are dearer by double digits.

These include vegetable ghee 38 per cent, mustard oil 33 per cent, masoor pulse 32 per cent, milk powder 30 per cent, vegetable ghee (tin) 28 per cent, cooking oil (tin) 28 per cent and fresh milk prices increased by 14 per cent.

Among these items, in a short span of just one week the prices of tomatoes shot up by 16.78 per cent, onions 12.42 per cent, chicken (farm) 5.22 per cent, potatoes 3.6 per cent, LPG (11 kg cylinder) 2.69 per cent, masoor pulse 2.25 per cent, powder milk 1.92 per cent and mustard oil by 1.79 per cent percent.

These figures further showed that though prices of 22 items posted no change during the week, yet compared to the corresponding week of last year, several items are now dear.

For example rice Irri-6 is dearer by 39 per cent, match box 26 per cent and cooked beef by 11 per cent.

The bulletin further indicates that the prices of 10 items declined, but compared to prices of corresponding weeks of last year, items, which showed an increase in prices, were; rice basmati (broken) was dearer by 54 per cent, egg (farm) 22 per cent, curd 13 per cent and wheat flour price up by 12 per cent.

http://www.thenews.com.pk/daily_detail.asp?id=67922

 

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PM asks workers to learn new technologies ​

KARACHI: Prime Minister Shaukat Aziz has said workers should learn new technologies to enhance capability and productivity. Being the back bone of economy workers are carrying forward Pakistan.

“You should leave obsolete working skills and learn modern technologies to enhance productivity,” he told a delegation of leaders of workers’ unions of the Karachi Port Trust and the Port Qasim Authority here at the Governor’s House on Saturday. Federal Political Affairs Minister Amir Muqam, Minister of State for Information Tariq Azim and Sindh Chief Secretary Ejaz Qureshi were also present

The prime minister said technology was future of the world and every country was striving to acquire new technologies for faster growth, improve efficiency and competitiveness. He said China, a close friend of Pakistan, had grown rapidly and excelled due to hard work and adoption of new technology

“We are taking every possible step to protect the interest of workers, raised salaries of govt employees manifold in the last eight years and enhanced minimum wage twice in two years. We will take more pro-worker measures,” he assured He said he would consult managements of the KPT and the PQA and take a decision to benefit both parties. “We will examine your demands and take a decision with the consent of both parties.”

http://www.thenews.com.pk/daily_detail.asp?id=67923

 

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Infrastructure problems block horticulture growth ​

ISLAMABAD: Lack of infrastructure in the shape of dedicated refrigerated trucks, rail cars and containers, space on aircraft and improved connectivity with the international markets is a major impediment blocking the growth of the horticulture sector of Pakistan.

The issue was raised by the Sub-Committee on Infrastructure (SC-I) of the Task Force on Horticulture Finance and Competitiveness, which met on Saturday under the chairmanship of Mushtaq Malik, Secretary Board of Investment.

The committee noted that there were disparities between the infrastructure in Punjab, where facilities were generally good, and other provinces. It recognised the need for a national approach that could link production in remote areas with the main markets.

The aim of the committee is to help the task force achieve its goal by ensuring that all relevant actions are taken in developing needed infrastructure to facilitate production, post-harvest handling, storage, transport, processing and exports by sea, land and air of horticulture products.

The committee identified core areas and issues impacting the competitiveness of the horticulture sector. The meeting noted that the horticulture industry required major support in the area of infrastructure. This particularly included transport (eg dedicated refrigerated trucks, rail cars and containers), space on aircraft and improved connectivity with the international markets.

The committee will also be including its recommendations on financing requirements for the infrastructure projects, where more private sector and public-private partnerships will be encouraged.

Soft infrastructure in the form of improved technology transfer, increasing knowledge at the farm level and developing access to market information were also identified as priority areas to be included in the National Horticulture Policy and government’s plans for the sector. The committee will submit the findings of the meeting to the Implementation Committee for a final review of the task force.

Dr Salman Shah, Adviser to the Prime Minister on Finance, Economic Affairs, Revenue and Statistics will make a presentation to the prime minister on improving the financing for the horticulture sector to improve its competitiveness.

The task force’s recommendations would also complement the government’s strategy for the National Trade Corridor initiative, which is envisioned to create growth-facilitating infrastructure. This will revamp the whole transport sector including ports, roads, railways, aviation, etc.

The framework takes a holistic and integrated approach to reduce the cost of doing business by improving the trade and transport logistics’ chain and improving Pakistan’s overall competitiveness.

To improve the competitiveness of the economy, Prime Minister Shaukat Aziz has earlier announced that roads are a major part of the National Trade Corridor (NTC) and all 115 ongoing projects pertaining to roads and highways costing Rs415 billion will be completed by 2014.

All these efforts are expected to help increase Pakistan’s exports from US$17 billion in 2006-07 to around $250 billion by 2030. The infrastructure development initiatives will ultimately facilitate in decreasing the cost of doing business through improvements in trade logistics for the horticulture sector as well.

Speaking on the occasion, Senior Adviser to the Competitiveness Support Fund Geoff Quartermaine Bastin briefed the members that the Special Economic Zones might have a role to play in the development of the horticulture industry and the committee would work with CSF’s consultants in this area to identify SEZs that offered particular benefits to the industry.

The world horticulture market is valued at $80 billion to which Pakistan contributes an annual $150 million worth of products. Only about 16 per cent of fruits are being processed, although this activity offers great opportunities to augment the volume of value added products using modern technology.

The fruits and vegetables exported in fresh form attract discounted prices because the exporters are unable to provide adequate grading and packing. Pakistan’s horticulture export industry share in the world market rose steadily from about 5 per cent in 1991 to 12 per cent in 2004. The potential markets for the Pakistani exporters have been identified in Europe and the Middle East.

http://www.thenews.com.pk/daily_detail.asp?id=67926

 

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AJK revenue collection soars by 41 per cent ​

MIRPUR (AJK): The Azad Jammu and Kashmir’s Tax Department has collected revenues of Rs4.74 billion during financial year 2006-07 against last year’s collection of Rs3.35 billion. This shows a surge of Rs1.39 billion or 41 per cent in revenue collection despite the adverse effects of the destructive earthquake of 2005 on the economy of AJK.

Unveiling the facts, a spokesman for the AJK Tax Department told The News the department had broken all records of revenue collection, achieved as a result of broad-based reforms introduced by the Regional Commissioner Taxes AJK Sardar Irshad Shaheen.

The reforms were primarily aimed at improving the performance of the tax department, besides promoting and encouraging a tax culture in Azad Jammu and Kashmir.

The spokesman revealed that the Indirect Tax Wing (E&ST) achieved an unprecedented increase in the collection of indirect taxes, despite a drastic reduction in the rate of sales tax as well as closure of some manufacturing factories.

He disclosed that arrangements for training and frequent workshops for the officers, expansion of the department on professional lines as well as introduction of incentives for efficient and honest workers gave a tremendous boost to the efficiency of the department. In the process, disciplinary action against more than 80 employees was also taken, which resulted in a substantial fall in mismanagement and corruption, he added.

Simultaneously, he said, efficient and honest officers were promoted on merit, some new offices were opened and cash rewards were introduced as an incentive for enhancing the collection of revenue.

In recognition of the officers’ contribution to surpassing the revenue target, the AJK Council had approved the purchase of three new vehicles for them, he said, adding 23 new motorcycles had also been distributed among the officers for efficient and speedy recovery of taxes.

About new appointments, the spokesman said more than 6,500 applications had been received for around 113 vacant posts and a transparent system of conducting tests had been introduced by outsourcing the job to an expert organisation.

All these measures contributed to an unparallel surge in overall revenues including income tax, sales tax, federal excise and other taxes, he added.

Giving the break-up of revenue collection, he said income tax collection for the year ended June 30, 2007 stood at Rs3.45 billion against last year’s Rs2.56 billion and target of Rs2.8 billion.

Similarly, collection of sales tax, federal excise and other taxes came to Rs1.28 billion compared to last year’s collection of Rs790 million and target of Rs810 million.

The members of the AJK Council as well as the president and the prime minister of the state hoped that enhanced collection of taxes would enable the AJK government to rely more on its own resources, the spokesman added.

http://www.thenews.com.pk/daily_detail.asp?id=67931

 

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Govt regards IT a key driver of economic growth: PM​

KARACHI: Prime Minister Shaukat Aziz said on Friday that the government considers Information Technology (IT) a key driver of economic growth and has created an enabling environment over the last few years.

This, Mr Aziz said, has resulted in tremendous expansion, value addition and employment generation. He was talking to a delegation comprising corporate leaders, authors, researchers and venture capitalists from various countries who are currently in Pakistan to attend a conference in Karachi arranged by Pakistan Software Export Board (PSEB), said a statement. The meeting was held here at the Governor House on Friday night.

The PM said Pakistani companies are well positioned to become active contributors to the global knowledge economy where globalisation, continuous change and information flows are re-inventing the rules of the game. This, he said, is a unique opportunity for corporate leaders in Pakistan to interact with global leaders of the knowledge economy.

Highlighting the achievements of the government for the growth of information and communication technology, he said the reforms in information technology and telecom sector were underpinned by liberalisation, privatisation, deregulation and transparency.

Referring to the demographic division of Pakistan, the PM said out of 160 million population, 100 million people are below the age of 25 and this fact presents both a challenge and an opportunity. The best way to leverage this potential is to focus on human development and in particular on education and skills, reflecting national and international market requirements, he added.

The PM further said young people are among the most prolific and knowledgeable users of information and communication technology. Mr Aziz called upon the policy-makers and industry leaders to put their minds together to produce suitable technologies, applications and services to facilitate access to children and youth. The young people everywhere must have equal opportunities to rise out of poverty and illiteracy and to realise their full potential, he added.

Elaborating the rapid growth in telecom sector, he said that tele-density has increased from three percent in 2000 to 40 percent in 2007. The total number of fixed and mobile subscribers, he said has reached 67 million, with major contribution coming from the mobile sector. Pakistan has already crossed the Asian connectivity average, surpassing India and Sri Lanka, and is close to China, he added.

Mr Aziz said the telecom sector attracted foreign investment on license and infrastructure to the tune of $9 billion during the last five years and another $4 billion is expected on roll-out by 2010. Today, he added, over 110,000 graduates are employed in the economy and the projected demand by 2010 would be for around 230,000 graduates. To meet this demand the Ministry of Information Technology, Higher Education Commission and Pakistan Software Export Board are undertaking a number of programmes to help ensure that supply matches the projected demand, he said. Talking about the significance of capacity building in the IT sector, the Prime Minister said a comprehensive programme of Technical and Vocational Education aimed at maximum utilisation of existing facilities as well as creating new ones has been established under the title of National Vocational and Technical Education Commission.

At present 350,000 students per annum are being imparted various skills across the country and it is targeted to reach the level of one million students per year by 2010, the PM said. Explaining incentives given to foreign investor in Pakistan the Prime Minister said up to 100 percent equity ownership, 100 percent repatriation of profit and corporate tax exemption on IT exports till 2016 are the salient features of the government’s policy. Owing to incentives and programmes as well as availability of a large pool of English-speaking technical manpower, the PM said Pakistan offers a tremendous competitive advantage for the corporate sector. app

http://www.dailytimes.com.pk/default.asp?page=2007\08\12\story_12-8-2007_pg5_9

 

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Pakistan must improve global performance in exports ​

ISLAMABAD (August 13 2007): Pakistan has to improve its global competitiveness in exports, which means that it will have to improve its index from the present 91 among 125 countries in 2006. It was 94 in 2005.

According to a working paper of Pakistan Institute of Development Economics (PIDE), which examines the potential for export growth for improving global competitiveness, it is a multi-faceted problem calling for improvement in governance, technological progress, improved value-addition and sophistication of technology.

The working paper 'International Competitiveness-where Pakistan Stands?', prepared by Staff Economist Uzma Zia, has stressed the need for technology-intensive activities. It says that high technology exports will come by strengthening research and development through investment in human capital. To achieve this, there should be combined effort of the main three actors ie government, individuals and business initiatives by firms and private sector.

The working paper observes that being at 91st position among 125 countries, Pakistan is counted among the worse performers because of the absence of good governance. Moreover, the government has shown quite low ranking in all nine pillars of the competitiveness index, especially health, primary education, macro economy, higher education and training and technological readiness.

It is pertinent to mention that the government so far has been working on a draft of technology-based development or knowledge-based economy for the last three years, without much tangible progress. The draft has not been finalised yet.

It may be further pointed out that the global competitiveness report on Pakistan with regard to various pillars for competitiveness index endorses Pakistan's performance in human development and some sectors of social indicators.

Referring to experts' analysis and review of the country's exports, the paper notes that Pakistan's share in total world exports has declined between 1990 and 2002. Its share of global manufacturing exports has remained stagnant at 0.18 percent, whereas several countries like China, Malaysia, Thailand and India have shown rapid expansion in exports by 2004.

Pakistan invested heavily to prepare for post-MFA regime and showed satisfactory progress in the first six months of 2005 in export of cotton manufactures. Despite structural and economic reforms, Pakistan's economy remains dependent on in producing and processing which contribute 12 to 15 percent of national products.

According to experts, Pakistan scores relatively low on export sophistication because of low technology. The country's capacity in high technology and scientific research is limited. Thus, its share in technology-intensive products has been low. Further, skill development and social/human capital have suffered neglect and there was decline in education spending. This resulted in low productivity. A comparison with productivity measure with a few regional economies indicates that Pakistan's estimated value-added per capita manufacturing is lower.

As noted by some economists, Pakistan's unit wage costs are higher than most regional economies. The reasons for less encouraging business climate include inadequate provision of infrastructure, high business costs and high level of government regulations, bureaucracy and political situation, the paper adds.

The paper said that World Bank review of the value chain analysis of 2006, useful in assessing export competitiveness, examined the export of five specific items like textiles, fisheries and shrimps and new products like marble, powdered milk and agri-businesses and automobile items.

Findings on the basis of production costs of all segments of value chain, productivity and export competitiveness spoke of relevant policies/constraints to cost and quality issues, food quality and safety standards. Major constraints identified were infrastructure, burdensome regulations, weak legal and enforcement framework, low coordination among government agencies, and inadequate access to finance.

An earlier survey/analysis of value-added manufacturing by ADB brought out similar weaknesses like low technology, and inadequate adoption of high technology, and had very little share of medium and high technology.

The paper stresses the need not only for specialisation in textiles but also for improvement and innovation.

http://www.brecorder.com/index.php?id=605137&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

ADB to provide $500 million for infrastructure uplift project ​

FAISALABAD (August 13 2007): Asian Development Bank (ADB) will provide $500 million for Private Participation in Infrastructure Development Project - MFF. In a project study, Julie Rogers, Principal Financial Sector Specialist of ADB mentioned that the Private Participation in Infrastructure and Utilities Sector Development Programme (PPI SDP) aims to enhance growth through improved infrastructure and utilities.

It will promote private sector participation in infrastructure and utility investment and maintenance, thereby reducing the government's fiscal burden and enhance the population's access to quality infrastructure services. To achieve these objectives, the PPI SDP will (i) strengthen the enabling environment for PPI by addressing remaining policy, legal, regulatory and institutional constraints to PPI and (ii) provide technical and financial support for PPI subprojects, ADB expert added.

Project study revealed that infrastructure development is a key pillar of the Pakistan government's Medium-Term Development Framework (MTDF) for 2005-2010 in recognition of its importance in sustaining economic growth to alleviate poverty. Addressing the serious bottlenecks in infrastructure and utilities will require the investment of substantive resources over the MTDF period and beyond. Given the government's fiscal situation, these investments cannot be financed by the public sector alone.

Hence, alternative approaches are needed, including private participation in infrastructure and utilities. It is proposed that the investment programme will be supported by a multitranche financing facility (MFF) amounting to $500 million.

http://www.brecorder.com/index.php?id=605145&currPageNo=2&query=&search=&term=&supDate=